Without specific inventory purchase and sale details, it is not possible to compute the ending inventory using FIFO, LIFO, or average-cost. However, an explanation of how to calculate average cost is provided, using hypothetical inventory and cost figures.
Calculating the ending inventory using FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and average-cost methods requires a different approach for each. These inventory valuation methods are based on the cost of goods sold (COGS) and assume different flows of inventory costs. It's important to understand the specifics of the inventory units being sold, their costs, and the periods they were purchased in to accurately compute the ending inventory using these methods. Since the question does not provide specific inventory purchase and sale dates, quantities, and costs related directly to the ending inventory, a precise calculation cannot be provided without this data.
To calculate the average cost per unit, typically, you would sum the total cost of goods available for sale and divide it by the total units available for sale. The resulting average cost per unit will then be multiplied by the ending inventory in units to determine the value of the ending inventory. As specific details about the inventory costs and quantities are
If we had the following inventory purchases:
- 100 units at $10 each
- 150 units at $12 each
And an ending inventory of 120 units, the average cost calculation becomes:
(100 units x $10) + (150 units x $12) = $1,000 + $1,800 = $2,800 total cost
Total units = 100 + 150 = 250 units
Average cost per unit = $2,800 รท 250 units = $11.20 per unit
Ending inventory at average cost = 120 units x $11.20 = $1,344